Positional types of these effects result from competition between actors that leads to inefficiency, such as conspicuous consumption. They can be offset by bargaining and well-defined property rights instead of by government regulation, according to the Coase theorem. Positive types of these give ri
Positional types of these effects result from competition between actors that leads to inefficiency, such as conspicuous consumption. They can be offset by bargaining and well-defined property rights instead of by government regulation, according to the Coase theorem. Positive types of these give rise to the free rider problem and negative types may be countered by levying Pigovian taxes, such as a "carbon tax." Common examples of these economic effects include public parks and industrial pollution. By definition, they affect a third party who did not take part in the causative transaction. For 10 points, name these extra costs or benefits not accounted for by prices.
Positional types of these effects result from competition between actors that leads to inefficiency, such as conspicuous consumption.
{externalities} or {spillovers} [accept word forms]